Why Hire a Jeans Store CEO

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Why Hire a Jeans Store CEO

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WHY HIRE A JEANS STORE CEO TO RUN A CAFETERIA CHAIN? 
By Rich Unger 

EVER HEAR THE STORY OF HOW A TEXAS BASED CAFETERIA CHAIN, THAT HAD 220 CAFETERIAS IN TEN STATES HIRED THE FORMER CEO OF "COUNTY SEAT" BLUE JEAN STORES THAT WENT BANKRUPT? 
THE FOLLOWING IS A TRUE STORY, NONE OF THE NAMES HAVE BEEN CHANGED, THERE IS NO ONE WHOM IS INNOCENT. 

LUBY'S IS A SAN ANTONIO BASED DOWNWARD SPINNING CAFETERIA CHAIN.  I USE CAPITAL SIZE LETTERS IN THIS ARTICLE, BECAUSE OF THE CAPITAL SIZE CHUTZPAH, OF BARRY PARKER, OF THE BOARD OF DIRECTORS OF LUBY'S AND OF THE STOCKHOLDERS. 

THE ONLY CLEAR FACT IS LUBY'S OPERATES 220 CAFETERIAS IN TEN STATES.  NOW ON THE MY NEW COURSE IT'S CALLED, "HOW TO RUIN A CAFETERIA CHAIN 101."  FIRST YOU TAKE A LEGENDARY CAFETERIA CHAIN, "LUBY'S" AND THEIR CONSTANT STRUGGLE TO CAPTURE THEIR MARKET SHARE, THEIR CONSTANT STRUGGLE TO COME OF AGE AND MODIFY IT'S OPERATION TO BE CURRENT IN THE YEAR 2001.......... 

THEIR CONSTANT OBSTACLES IN MARKETING AND GETTING THE MESSAGE OUT THERE, THEIR CONSTANT STRUGGLE IN ATTEMPTING ANY NEW EXPANSION, AND FINALLY THEIR BIZARRE AND ALMOST SUICIDAL MOVE IN APPOINTING THE FORMER CEO OF THE BLUE JEAN STORE CHAIN, "COUNTY SEAT" WHICH WAS A MALL STAPLE FOR YEARS, AND THEN WENT THE WAY OF FADED JEANS AND FILED BANKRUPTCY. 

WHAT'S THE FIRST INITIATIVE THE NEW CEO PARKER IMPLEMENTED?  HE CUT MANAGER'S PAY INCENTIVE PLANS AND DRAMATICALLY REDUCED THEIR INCOME AND THEIR OVERALL SHARE IN SALES.   MR. BLUE JEANS THEN ATTEMPTED TO OUTSOURCE FOOD AND THOUGHT IT WOULD DRAMATICALLY SAVE COSTS, WRONG, HE WOULD NOT TAKE FEEDBACK FROM HIS SOLDIERS IN THE FIELD, THOSE ON THE FRONT OF THE CAFETERIA LINES WHO KNEW WHAT WAS AILING THE COMPANY. 

HE DID DO ONE THING RIGHT, HE CREATED A TAKE OUT PROGRAM THAT NOW ACCOUNTS FOR 12% OF THEIR SALES, BUT MY QUESTION IS AT WHAT COSTS?  PARKER GOT A $354,000 GOLDEN PARACHUTE AND WAS TOLD TO PULL HIS OWN RIP CORD, AND IN SIMPLE TERMS AS DON IMUS WOULD SAY, "JUST GET OUT." 

IN THE MEANTIME LUBY'S REVENUES FELL 7% UNDER HIS GENIUS AND IS STRUGGLING TO RESURRECT ITSELF. 

MY QUESTIONS ARE SIMPLE AND CUT TO THE CHASE..... 

  1. WHY HIRE A BLUE JEANS STORE CEO WHO'S COMPANY JUST FILED BANKRUPTCY TO RUN 
    A STRUGGLING CAFETERIA CHAIN?
  2. WHY ALLOW HIM TO CREATE SUCH DISCOURSE AND DISASTER IN SUCH A SHORT TIME? 
  3. WHY DIDN'T THE BOARD OF DIRECTORS DEMAND A GAME PLAN AND STRATEGY BLUEPRINT FROM HIM? 
  4. WHY DIDN'T THE BOARD OF DIRECTORS HIRE A HEADHUNTER TO GET THEM THE BEST RESTAURANT CEO MONEY COULD BUY?
  5. WHY DIDN'T THE BOARD OF DIRECTORS SEEK INPUT FROM THEIR OWN MANAGERS AND DISTRICT MANAGERS TO FIND OUT TRULY WHAT WAS WRONG AND WHAT IT WOULD TAKE TO FIX IT? 
  6. WHY DIDN'T THE BOARD OF DIRECTORS RETAIN A TOP NOTCH AD AGENCY FOR A GUERILLA WARFARE CAMPAIGN TO WIN BACK PATRONS WITH NEW DISHES, NEW INCENTIVE DINING PROGRAMS, NEW RAPID READY MEALS, NEW SERVE YOUR OWN DESERT BARS, NEW CHILDREN'S BUFFETS? 

THE MOST FRUSTRATING MOVE TO ME IS TAKING A CEO FROM A FIELD TOTALLY UNRELATED TO THE FOOD AND BEVERAGE FIELD AND INSTALLING HIM IN THE CEO SEAT AND LETTING HIM SYSTEMATICALLY DESTROY A GREAT CHAIN....  WHAT WOULD I HAVE DONE YOU ASK, HAD THE BOARD OF LUBY'S PUT ME IN THE CEO HOT SEAT? 

FOR STARTERS I WOULD have VISITED EVERY SINGLE LUBY'S AND SPOKEN FIRST HAND WITH THE PEOPLE ON THE FOOD LINES BOTH THE EMPLOYEES AND THE CUSTOMERS, YOU CAN'T GRASP THE PROBLEMS OF A FOOD AND BEVERAGE OPERATION, IF YOU CAN'T SEE, FEEL, SMELL AND TAKE IN THE ENTIRE OPERATION........  I WONDER WHEN THE LAST TIME THE "SUITS" AT DARDEN AND BRINKER VISITED THEIR 
UNITS? I DON'T MEAN THEIR UNITS CLOSE TO CORPORATE GEOGRAPHICALLY, I MEAN THE OUTCASTS, THE UNITS OF CHILI'S OLIVE GARDEN, RED LOBSTER THAT ARE WAY OUT THERE.... 

CALL ME BEFORE YOU HIRE A FORMER CEO OF A FREDERICK'S OF HOLLYWOOD TO RUN YOUR FOOD AND BEVERAGE OPERATION AND LET ME TURN IT AROUND.... 

Call Rich Unger at 941-921-7027 or e-mail him at RichUnger@promotingnightclubs.com

 

Copyright � 2001 Rich Unger

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This web site, its contents, graphics and text are � 2005, Promoting Nightclubs.com.
All Rights Reserved. For comments, questions, or suggestions about this site, contact the webmaster.

[ Home ]

This web site, its contents, graphics and text are � 2005, Promoting Nightclubs.com.
All Rights Reserved. For comments, questions, or suggestions about this site, contact the webmaster.

[ Home ]

This web site, its contents, graphics and text are � 2005, Promoting Nightclubs.com.
All Rights Reserved. For comments, questions, or suggestions about this site, contact the webmaster.